HATSUN AGRO PROD. 2023-24 Annual Report Analysis

Wed, 31 Jul

HATSUN AGRO PROD. has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HATSUN AGRO PROD. Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY24 as against 9.7% in FY23.
• Depreciation charges increased by 13.3% and finance costs increased by 22.4% YoY, respectively.
• Other income grew by 113.8% YoY.
• Net profit for the year grew by 61.2% YoY.
• Net profit margins during the year grew from 2.3% in FY23 to 3.3% in FY24.

HATSUN AGRO PROD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	72,470	79,904	10.3%
Other income	Rs m	106	226	113.8%
Total Revenues	Rs m	72,575	80,130	10.4%
Gross profit	Rs m	7,014	8,990	28.2%
Depreciation	Rs m	3,615	4,095	13.3%
Interest	Rs m	1,259	1,542	22.4%
Profit before tax	Rs m	2,246	3,579	59.4%
Tax	Rs m	587	906	54.3%
Profit after tax	Rs m	1,659	2,673	61.2%
Gross profit margin	%	9.7	11.3
Effective tax rate	%	26.1	25.3
Net profit margin	%	2.3	3.3

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HATSUN AGRO PROD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 18 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 60.3%.
• Long-term debt stood at Rs 10 billion as compared to Rs 8 billion during FY23, a growth of 22.4%.
• Current assets rose 122% and stood at Rs 16 billion, while fixed assets rose 8% and stood at Rs 37 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 53 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 28%.

HATSUN AGRO PROD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,407	15,723	9.1
Current Liabilities	Rs m	11,483	18,406	60.3
Long-term Debt	Rs m	7,804	9,555	22.4
Total Liabilities	Rs m	41,305	52,934	28.2
Current assets	Rs m	7,151	15,905	122.4
Fixed Assets	Rs m	34,155	37,029	8.4
Total Assets	Rs m	41,305	52,934	28.2

HATSUN AGRO PROD. Cash Flow Statement Analysis

• HATSUN AGRO PROD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -715 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 258% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 136 million from the Rs 0 million net cash flows seen during FY23.

HATSUN AGRO PROD. Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	7,412	-715	-
Cash Flow from Investing Activities	Rs m	-4,408	-3,885	-
Cash Flow from Financing Activities	Rs m	-3,004	4,735	-
Net Cash Flow	Rs m	0	136	1,361,300.0%

Current Valuations for HATSUN AGRO PROD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.0, an improvement from the EPS of Rs 7.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,205.5, stands at 84.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.1 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 33.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	325.3	358.7
TTM Earnings per share	Rs	7.4	12.0
Diluted earnings per share	Rs	7.4	12.0
Price to Cash Flow	x	35.8	33.7
TTM P/E ratio	x	113.9	84.5
Price / Book Value ratio	x	14.8	14.5
Market Cap	Rs m	212,838	228,133
Dividends per share (Unadj.)	Rs	6.0	6.0

Ratio Analysis for HATSUN AGRO PROD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.3x during FY24, from 2.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 17.0% during FY24, from 11.5% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 20.3% during FY24, from 15.8% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.0% during FY24, from 7.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.6	0.9
Debtors’ Days	Days	4	5
Interest coverage	x	2.8	3.3
Debt to equity ratio	x	0.5	0.6
Return on assets	%	7.1	8.0
Return on equity	%	11.5	17.0
Return on capital employed	%	15.8	20.3

To see how HATSUN AGRO PROD. has performed over the last 5 years, please visit here.

HATSUN AGRO PROD. Share Price Performance

Over the last one year, HATSUN AGRO PROD. share price has moved up from Rs 1,033.9 to Rs 1,205.5, registering a gain of Rs 171.6 or around 16.6%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for HATSUN AGRO PROD. and quarterly results for HATSUN AGRO PROD.)